Question

X and Y are partners sharing profits and losses in the ratio of 7:3. They admit.C as a new Partner for 1/10 share Y retains his old share Calculate new profit sharing ratio and sacrificing ratio.​

Answer 1

Given data:

• X and Y are partners in a firm, sharing profits and losses in the ratio 7:3.
• C is admitted into the firm for 1/10 of the profits.
• Y retains his old share.

To find: The new profit sharing ratio and sacrificing ratio.

Answer:

Assumed profit distribution:

• Share of X = 7/10 of the profits
• Share of Y = 3/10 of the profits
• Share of C = 1/10 of the profits

Since Y retains his old share, 1/10 will be deducted from X's share.

X's new share = 7/10 - 1/10 = 6/10

Corrected profit distribution:

For X:

• 6/10 of the profits

For Y:

• 3/10 of the profits

For C:

• 1/10 of the profits

Calculation of sacrificing ratio:

Sacrificing ratio = Old ratio - New ratio

For X:

• 7/10 - 6/10 = 1/10

For Y:

• 3/10 - 3/10 = 0 [No sacrifice]

For C:

• 1/10 - 1/10 = 0 [No sacrifice]

Therefore, the new profit sharing ratio is 6:3:1 and the sacrificing ratio is 1.